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Responsibility for the integrity and objectivity of the accompanying financial statements of the Public Service Commission (PSC) for the year ended March 31, 2011 and all information contained in these statements rests with PSC’s management. These financial statements have been prepared by management in accordance with Treasury Board accounting policies, which are based on Canadian generally accepted accounting principles for the public sector.
Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management's best estimates and judgment and gives due consideration to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of PSC's financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada and included in the PSC's Departmental Performance Report is consistent with these financial statements.
Management is also responsible for maintaining an effective system of internal control over financial reporting designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities and policies.
Management seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training, and development of qualified staff; through organizational arrangements that provide appropriate divisions of responsibility; through communication programs aimed at ensuring that regulations, policies, standards, and managerial authorities are understood throughout the PSC; and through conducting an annual assessment of the effectiveness of the system of internal control over financial reporting (ICFR).
An assessment for the year ended March 31, 2011 was completed in accordance with the Policy on Internal Control and the results and action plans are summarized in the annex. The system of ICFR is designed to mitigate risk to a reasonable level and may not prevent or detect misstatements. It is based on an on-going process to identify key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments.
The effectiveness and adequacy of the PSC’s system of internal control is reviewed by the work of internal audit staff, who conduct periodic audits of different areas of the PSC's operations, and by the Departmental Audit Committee, which oversees management's responsibilities for maintaining adequate control systems and the quality of financial reporting, and which recommends the financial statements to the President of the PSC.
The Office of the Auditor General, the independent auditor for the Government of Canada, has expressed an opinion on the fair presentation of the financial statements of PSC which does not include an audit opinion on the annual assessment of the effectiveness of PSC’s internal controls over financial reporting.
Ottawa, Canada
August 04, 2011
To the Speaker of the House of Commons and the Speaker of the Senate
I have audited the accompanying financial statements of the Public Service Commission, which comprise the statement of financial position as at 31 March 2011, and the statement of operations, statement of equity of Canada and statement of cash flow for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
In my opinion, the financial statements present fairly, in all material respects, the financial position of the Public Service Commission as at 31 March 2011, and the results of its operations and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.
In my opinion, the transactions of the Public Service Commission that have come to my notice during my audit of the financial statements have, in all significant respects, been in accordance with the Financial Administration Act and regulations and the Public Service Employment Act.
John Wiersema, FCA
Interim Auditor General of Canada
4 August 2011
Ottawa, Canada
Assets | 2011 | 2010 |
---|---|---|
Financial assets | ||
Due from the Consolidated Revenue Fund | 3,822 | 5,163 |
Accounts receivable and advances (Note 4) | 1,123 | 953 |
4,945 | 6,116 | |
Non-financial assets | ||
Prepaid expenses | 614 | 601 |
Tangible capital assets (Note 5) | 15,072 | 17,449 |
15,686 | 18,050 | |
Total assets | 20,631 | 24,166 |
Liabilities | ||
Lease obligation for tangible capital assets (Note 6) | 18 | 18 |
Accrued salary | 1,855 | 1,837 |
Accrued vacation leave | 3,652 | 3,847 |
Accounts payable and accrued liabilities (Note 7) | 3,194 | 6,251 |
Employee future benefits (Note 8) | 17,367 | 17,396 |
26,086 | 29,349 | |
Equity of Canada (Note 9) | (5,455) | (5,183) |
Total liabilities and Equity of Canada | 20,631 | 24,166 |
Contingent liabilities (Note 10) | ||
Contractual obligations (Note 11) |
The accompanying notes form an integral part of these financial statements.
Ottawa, Canada
August 04, 2011
Expenses (Note 12) | 2011 | 2010 |
---|---|---|
Staffing services and assessment | ||
Staffing services | 25,414 | 28,716 |
Assessment | 22,735 | 27,273 |
48,149 | 55,989 | |
Oversight of integrity of staffing and political neutrality | ||
Audits, evaluation and studies | 18,713 | 16,663 |
Investigations and early intervention mechanisms | 4,181 | 4,351 |
Monitoring | 3,222 | 3,428 |
26,116 | 24,442 | |
Appointment integrity and political neutrality | ||
Policy, regulation and exclusion approval orders | 6,532 | 6,695 |
Non-delegated authorities | 3,176 | 2,601 |
Delegated appointment authorities | 2,945 | 2,835 |
Political activities | 1,099 | 1,238 |
13,752 | 13,369 | |
Internal services | ||
Resource management services | 27,804 | 28,017 |
Governance and management support | 14,316 | 13,015 |
Asset management services | 2,810 | 3,173 |
44,930 | 44,205 | |
Total expenses | 132,947 | 138,005 |
Revenues | ||
Assessment and counselling services and products | 12,095 | 12,399 |
Activities on behalf of: | ||
Canada School of Public Service | 41 | 53 |
Less: Costs recovered | (41) | (53) |
Net cost of operations | 120,852 | 125,606 |
The accompanying notes form an integral part of these financial statements
2011 | 2010 | |
---|---|---|
Equity of Canada, beginning of year | (5,183) | (2,111) |
Net cost of operations | (120,852) | (125,606) |
Net cash provided by Government of Canada | 102,445 | 108,698 |
Change in Due from the Consolidated Revenue Fund | (1,341) | (4,894) |
Services provided without charge from other government departments and agencies (Note 14) | 19,476 | 18,730 |
Equity of Canada, end of year | (5,455) | (5,183) |
The accompanying notes form an integral part of these financial statements.
2011 | 2010 | |
---|---|---|
Operating activities | ||
Cash received from: | ||
Assessment and counselling services and products | 11,938 | 13,091 |
Cash paid for: | ||
Salaries and employee benefits | 92,872 | 95,980 |
Professional and special services | 10,571 | 13,491 |
Transportation and telecommunications | 2,304 | 2,784 |
Repair and maintenance | 2,633 | 1,565 |
Informatics, office equipment, furniture and fixtures | 1,710 | 2,573 |
Rentals | 1,015 | 830 |
Utilities, materials and supplies, and other payments | 713 | 537 |
Printing and publications services | 451 | 721 |
112,269 | 118,481 | |
Cash used by operating activities | 100,331 | 105,390 |
Capital investment activities | ||
Acquisitions of tangible capital assets | 2,108 | 3,304 |
Proceeds from disposal of tangible capital assets | - | - |
Cash used by capital investment activities | 2,108 | 3,304 |
Financing Activities | ||
Lease payments for tangible capital assets | 6 | 4 |
Cash used in financing activities | 6 | 4 |
Net cash provided by Government of Canada | 102,445 | 108,698 |
The accompanying notes form an integral part of these financial statements.
For the year ended March 31, 2011
The Public Service Commission (PSC) is an independent agency established under the Public Service Employment Act (PSEA) and listed in schedules 1.1 and IV of the Financial Administration Act (FAA). It is dedicated to building a public service that strives for excellence by protecting merit, non-partisanship, and representativeness of Canadian society and the use of both official languages. This responsibility is performed in the best interests of the public service as part of Canada’s governance system, by administering and applying the provisions of the PSEA and by carrying out responsibilities as provided for in the Employment Equity Act and the Official Languages Act. The current PSEA came into force in December 2005. This legislation emphasizes the PSC’s accountability to Parliament and provides authority to the PSC to delegate staffing authority to deputy heads who in turn are accountable to the PSC for exercising this power. The PSC also carries out audits and investigations and administers measures under the PSEA regarding political activities of public servants.
The PSC, from its head office in Ottawa and its seven regional offices, offers recruitment services that allow talented Canadians, drawn from across the country, to join the public service and continually renews staffing services to meet the needs of a modern and innovative public service. The PSC has four program activities that contribute to the achievement of its objectives:
The Appointment Integrity and Political Neutrality activity develops and maintains a policy and regulatory framework for safeguarding the integrity of public service staffing and ensuring political neutrality. This activity includes establishing policies and standards, providing advice, interpretation and guidance, administering delegated and non-delegated appointment authorities, and allowing exceptions as appropriate.
The Oversight of Integrity of Staffing and Political Neutrality activity provides an accountability regime for the implementation of the appointment policy and regulatory framework for safeguarding the integrity of public service staffing and ensuring political neutrality. This activity includes monitoring departments’ and agencies’ compliance with legislative requirements, conducting audits, studies and evaluations, carrying out investigations, and reporting to Parliament on the integrity of public service staffing.
The Staffing Services and Assessment activity develops and maintains systems that link Canadians and public servants seeking employment opportunities in the federal public service with hiring departments and agencies. It provides assessment-related products and services in the form of research and development, consultation, assessment operations and counselling for use in recruitment, selection and development throughout the federal public service. This activity also includes delivering staffing services, programs and products to departments and agencies, to Canadians and public servants, through client service units located across Canada.
The Internal Services activity represents a group of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These activities include: Communications and Parliamentary Affairs; Corporate Management Practices and Evaluation; Human Resources Management; Finance and Administration; Information Technology Services; and Internal Audit. Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.
These financial statements have been prepared in accordance with the Treasury Board accounting policies stated below, which are based on Canadian generally accepted accounting principles for the public sector. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian generally accepted accounting principles, except as disclosed in Note 15 – Net Debt Indicator.
Asset class | Amortization period |
---|---|
Office equipment | 3 and 10 years |
Informatics hardware and infrastructure | 4 and 5 years |
Computer software | 3 years |
In-house developed software | Lesser of 12 years or useful life |
Furniture and fixtures | 15 years |
Vehicles | 6 years |
Leasehold improvements | Lesser of 10 years or term of lease |
Leased equipment | Lesser of term of lease/useful life |
The PSC receives most of its funding through annual Parliamentary appropriations. Items recognized in the statement of operations and the statement of financial position in one year may be funded through Parliamentary appropriations in prior, current or future years. Accordingly, the PSC has different net results of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:
a. Reconciliation of net cost of operations to current year appropriations used:
(in thousands of dollars) | ||
2011 | 2010 | |
---|---|---|
Net cost of operations | 120,852 | 125,606 |
Adjustments for items affecting net cost of operations but not affecting appropriations: | ||
Services provided without charge | (19,476) | (18,730) |
Amortization of tangible capital assets | (4,483) | (7,178) |
Revenue not available for spending | 1,596 | 1,671 |
Decrease in Employee future benefits | 29 | 1,878 |
Decrease (increase) in vacation leave | 195 | (217) |
Other | 136 | 217 |
98,849 | 103,247 | |
Adjustments for items not affecting net cost of operations but affecting appropriations: | ||
Acquisitions of tangible capital assets | 2,108 | 3,304 |
Decrease in lease obligations for tangible capital assets | 6 | 4 |
Increase in prepaid expenses | 13 | 213 |
2,127 | 3,521 | |
Current year appropriations used | 100,976 | 106,768 |
(b) Appropriations provided and used:
(in thousands of dollars) | ||
2011 | 2010 | |
---|---|---|
Parliamentary appropriations provided: | ||
Vote 105 - Operating expenditures | 91,629 | 98,833 |
Statutory contributions to employee benefit plans | 13,340 | 13,958 |
Spending of proceeds from disposal of surplus assets | 1 | 1 |
Refund of previous year revenue | 53 | 126 |
105,023 | 112,918 | |
Less: Lapsed appropriations - operating expenditures | (4,047) | (6,150) |
Current year appropriations used | 100,976 | 106,768 |
(in thousands of dollars) | ||
2011 | 2010 | |
---|---|---|
Receivables - Federal government departments, agencies and crown corporations | 1,067 | 910 |
Receivables - External parties | 50 | 37 |
Advances to PSC’s Employees | 6 | 6 |
Total | 1,123 | 953 |
(in thousands of dollars) | |||||||
Cost | 2011 | 2010 | |||||
---|---|---|---|---|---|---|---|
March 31, 2010 | Acquisitions | Disposals, write-offs | Transfers | March 31, 2011 | Net book value | Net book value | |
Office equipment | 699 | 5 | (86) | - | 618 | 248 | 298 |
Informatics hardware and infrastructure | 9,016 | 650 | (1,507) | - | 8,159 | 2,153 | 2,571 |
Software | 29,966 | 108 | (187) | 415 | 30,302 | 8,953 | 11,595 |
Furniture and fixtures | 1,465 | - | - | - | 1,465 | 1,047 | 1,129 |
Vehicles | 30 | - | - | - | 30 | 20 | 24 |
Leasehold improvements | 1,157 | - | - | - | 1,157 | 642 | 757 |
Assets under development | 1,055 | 1,345 | - | (415) | 1,985 | 1,985 | 1,055 |
Sub-Total | 43,388 | 2,108 | (1,780) | - | 43,716 | 15,048 | 17,429 |
Leased equipment | 22 | 6 | - | - | 28 | 24 | 20 |
Total | 43,410 | 2,114 | (1,780) | - | 43,744 | 15,072 | 17,449 |
(in thousands of dollars) | ||||
2011 | ||||
---|---|---|---|---|
Accumulated amortization | ||||
March 31, 2010 | Amortization | Disposals, write-offs | March 31, 2011 | |
Office equipment | 401 | 47 | (78) | 370 |
Informatics hardware and infrastructure | 6,445 | 1,068 | (1,507) | 6,006 |
Software | 18,371 | 3,165 | (187) | 21,349 |
Furniture and fixtures | 336 | 82 | - | 418 |
Vehicles | 6 | 4 | - | 10 |
Leasehold improvements | 400 | 115 | - | 515 |
Sub-Total | 25,959 | 4,481 | (1,772) | 28,668 |
Leased equipment | 2 | 2 | - | 4 |
Total | 25,961 | 4,483 | (1,772) | 28,672 |
The PSC has entered into agreements for photocopier rentals under capital lease with a cost of $27,800 and accumulated amortization of $4,187 as at March 31, 2011 ($22,000 and $2,000 at March 31, 2010). The obligations for the upcoming years include the following:
(in thousands of dollars) | ||
2011 | 2010 | |
---|---|---|
2012 | 7 | 4 |
2013 | 7 | 5 |
2014 | 5 | 5 |
2015 and thereafter | 0 | 5 |
Total future minimum lease payment | 19 | 19 |
Less: imputed interest (2.12% to 3.01%) | (1) | (1) |
Balance of obligations under leased tangible capital assets | 18 | 18 |
(in thousands of dollars) | ||
2011 | 2010 | |
---|---|---|
Federal government departments, agencies and crown corporations | 489 | 3,057 |
External parties | 2,705 | 3,194 |
Total | 3,194 | 6,251 |
(in thousands of dollars) | ||
2011 | 2010 | |
---|---|---|
Accrued benefit obligation, beginning of year | 17,396 | 19,274 |
Expense for the year | 1,717 | 140 |
Benefits paid during the year | (1,746) | (2,018) |
Accrued benefit obligation, end of year | 17,367 | 17,396 |
The deficit represents liabilities incurred by the PSC, net of assets, which have not yet been funded through appropriations. Significant components of this amount are employee future benefits and vacation pay liabilities. These amounts are expected to be funded by appropriations in future years as they are paid.
Claims are made against the PSC in the normal course of operations. There are currently claims outstanding at March 31, 2011, none of which are expected to result in payment ($0 at March 31, 2010)
The nature of the PSC's activities can result in some large multi-year obligations whereby the PSC will be obligated to make future payments when the services are received. Significant contractual obligations other than the lease obligation for tangible capital assets that can be reasonably estimated are summarized as follows:
(in thousands of dollars) | |||||
2012 | 2013 | 2014 | 2015 and thereafter | Total | |
---|---|---|---|---|---|
Service contracts | 2,633 | 347 | 245 | 19 | 3,244 |
Operating leases | 121 | 84 | 39 | 1 | 245 |
Total | 2,754 | 431 | 284 | 20 | 3,489 |
(in thousands of dollars) | ||||||
2011 | 2010 | |||||
---|---|---|---|---|---|---|
Staffing services and assessment | Oversight of integrity of staffing and political neutrality | Appointment integrity and political neutrality | Internal Services | Total | Total | |
Salaries and employee benefits | 36,154 | 21,166 | 11,613 | 28,720 | 97,653 | 98,062 |
Professional and special services | 3,337 | 1,658 | 710 | 5,745 | 11,450 | 13,556 |
Accommodation | 4,119 | 2,237 | 1,178 | 3,848 | 11,382 | 10,547 |
Amortization of tangible capital assets | 2,015 | 203 | 7 | 2,258 | 4,483 | 7,178 |
Transportation and telecommunications | 1,138 | 262 | 136 | 797 | 2,333 | 2,729 |
Repair and maintenance | 666 | 178 | 4 | 1,007 | 1,855 | 2,037 |
Informatics, office equipment, furniture and fixtures | 139 | 341 | 2 | 1,077 | 1,559 | 1,698 |
Utilities, materials and supplies, and other | 243 | 27 | 51 | 439 | 760 | 851 |
Rentals | 156 | 25 | 29 | 807 | 1,017 | 825 |
Printing and publications services | 182 | 19 | 22 | 232 | 455 | 522 |
Total | 48,149 | 26,116 | 13,752 | 44,930 | 132,947 | 138,005 |
The PSC is related in terms of common ownership to all Government of Canada departments, agencies and Crown corporations. The PSC enters into transactions with these entities in the normal course of business and on normal trade terms.
During 2010-2011, the PSC incurred expenses of $38,718,000 ($39,274,000 in 2009-2010) and earned revenues of $12,083,000 ($12,385,000 in 2009-2010) from transactions in the normal course of business with other federal government departments, agencies and Crown corporations. These expenses include services received without charge as described in Note 14.
During the year, the PSC received services that were obtained without charge from other government departments and agencies. These services without charge have been recognized in the PSC's Statement of Operations as follows:
(in thousands of dollars) | ||
2011 | 2010 | |
---|---|---|
Public Works and Government Services Canada - accommodation | 11,382 | 10,547 |
Treasury Board Secretariat - employer's share of insurance premiums | 6,714 | 6,904 |
Justice Canada - legal services | 1,137 | 1,039 |
Human Resources and Skills Development Canada - employer's portion of Worker's compensation payments | 133 | 133 |
Office of the Auditor General of Canada - audit services | 110 | 107 |
Total | 19,476 | 18,730 |
The presentation of the net debt indicator and a statement of change in net debt are required under Canadian generally accepted accounting principles.
Net debt is the difference between a government’s liabilities and its financial assets and is meant to provide a measure of the future revenues required to pay for past transactions and events. A statement of change in net debt would show changes during the period in components such as tangible capital assets, prepaid expenses and inventories. The PSC is financed by the Government of Canada through appropriations and operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by PSC is deposited to the CRF and all cash disbursements made by PSC are paid by the CRF. Under this government business model, assets reflected on the PSC’s financial statements, with the exception of the Due from the CRF, are not available to use for the purpose of discharging the existing liabilities of the PSC. Future appropriations and any respendable revenues generated by PSC’s operations would be used to discharge existing liabilities.
(in thousands of dollars) | ||
2011 | 2010 | |
---|---|---|
Liabilities | ||
Accounts payable and accrued liabilities | 3,194 | 6,251 |
Accrued salary | 1,855 | 1,837 |
Accrued vacation leave | 3,652 | 3,847 |
Employee future benefits | 17,367 | 17,396 |
Lease obligation for tangible capital assets | 18 | 18 |
Total Financial Liabilities | 26,086 | 29,349 |
Financial Assets | ||
Due from Consolidated Revenue Fund | 3,822 | 5,163 |
Accounts receivable and advances | 1,123 | 953 |
Total Financial Assets | 4,945 | 6,116 |
Net Debt Indicator | 21,141 | 23,233 |
Comparative figures have been reclassified to conform to the current year's presentation.
All electronic supplementary information tables found in the 2010–2011 Departmental Performance Report (DPR) can be found on the Treasury Board of Canada Secretariat (TBS) Web site.1
Supplementary table from the Public Service Commission (PSC)
E-mail address:
infocom@psc-cfp.gc.ca
Mailing address:
Public Service Commission
L’Esplanade Laurier
300 Laurier Avenue West
Ottawa, Ontario K1A 0M7
Supplementary information on the following subjects can be found in the publications section of the PSC’s Web site.
This document is available on the TBS Web site and on the publications section of the PSC’s Web site.
1 See 2010–2011 Part III—Departmental Performance Reports: Supplementary information (tables). Very first Treasury Board Expenditure Authority decision for total project cost.